What happens if the franchisee fails to satisfy the development schedule for Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
Default and Termination.** The MUDA is automatically terminated without opportunity for Franchisee to cure, if any of the following occur:
(i) Franchisee fails to satisfy the development schedule; or
(ii) Crave Cookies Franchising has the right to terminate any franchise agreement between Crave Cookies Franchising and Franchisee (or any affiliate thereof) due to Franchisee's default thereunder (whether or not Crave Cookies Franchising actually terminates such franchise agreement).
(iii) Initial location may be modified by Addendum to the Franchise Agreement.
(iii) Crave Cookies Franchising has the right to extend opening deadlines.
**5.
Limitation of Liability.** Franchisee's commitment to develop Crave Cookies businesses is in the nature of an option only.
If Crave Cookies Franchising terminates this MUDA for Franchisee's default, Franchisee shall not be liable to Crave Cookies Franchising for lost future revenues or profits from the unopened Crave Cookies businesses.
Franchisee may terminate this MUDA at any time.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, if a franchisee fails to satisfy the development schedule outlined in the Multi-Unit Development Agreement (MUDA), the agreement is automatically terminated. This termination occurs without any opportunity for the franchisee to rectify the situation.
This provision is significant for prospective multi-unit franchisees as it underscores the importance of adhering to the agreed-upon development timeline. Failing to meet these deadlines can result in the immediate loss of rights to develop further Crave Cookies locations under the MUDA. The franchisee should carefully consider their capacity to meet the development schedule before entering into a MUDA with Crave Cookies.
However, the FDD also states that Crave Cookies Franchising has the right to extend opening deadlines. This clause provides some flexibility, potentially allowing franchisees to negotiate extensions if unforeseen circumstances hinder their ability to meet the original schedule. Franchisees should maintain open communication with Crave Cookies and proactively seek deadline extensions if they anticipate any difficulties in meeting the development schedule.
Additionally, the FDD mentions that the franchisee's commitment to develop Crave Cookies businesses is in the nature of an option only. If Crave Cookies Franchising terminates the MUDA for the franchisee's default, the franchisee will not be liable to Crave Cookies Franchising for lost future revenues or profits from the unopened Crave Cookies businesses. The franchisee may also terminate the MUDA at any time.